One year advance maintenance charges for flat buyers

One year advance maintenance charges for flat buyers


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Bangalore Development Authority (BDA) has introduced a new policy under which flat buyers will have to make a one-year payment maintenance fee Advance, in addition to the cost of the flat. BDA has developed housing complex across the city, but many flats remain vacant for months after purchase. Some owners fail to pay maintenance charges on time, making it difficult for the BDA to maintain the infrastructure.

To overcome these financial constraints, BDA has mandated that buyers pay one year’s maintenance charges during flat purchase. Additionally, all residential complexes will have to form Resident Welfare Associations (RWAs) Within one year. If RWA is not formed within the stipulated time, BDA will continue to collect maintenance fees directly.

“Effective from the first week of December, the new rule applies to all new flat buyers,” an official said. Non-payment of maintenance fees will result in delay in registration. Currently, more than 2,000 flats, including newly constructed and unsold complexes, are affected by this policy.

Collecting maintenance charges in advance ensures smooth maintenance activities until the RWA is established. Otherwise, it becomes challenging to pursue owners for payment, especially when flats remain vacant after purchase.”

To address the unsold inventory, BDA has hired private agencies to facilitate sales. Buyers purchasing flats through these agencies will have to pay 3% service charge, which will be credited to the account of BDA.

After registration, BDA will distribute the agency’s commission. The BDA has directed every residential complex to set up an RWA within a year to handle the maintenance activities. Failure to do so will result in BDA continuing to charge maintenance charges. BDA has urged flat owners to immediately form associations for well-organized management of residential complexes.

“We decided to collect maintenance charges in advance to avoid losses and provide better services. In some complexes, only 20-30% of the flats have been sold, making maintenance difficult. Private agencies are already following this model, and it has proven effective,” said NA Harris, BDA president. 1% maintenance charge is charged on the selling price of the flat. Although this fee was charged earlier, it was not mandatory. Starting from December 2024, it is mandatory for all new buyers.

Maintenance charges include services like parks, lifts, swimming pools, sewage treatment plants, streetlights and waste management within the residential complexes. These services will be managed by the BDA until the Residents Welfare Association takes over. “The initiative aims to ensure better and smooth service delivery and financial sustainability for maintenance works at BDA premises,” said a Bengaluru Development Authority official.

  • Published on Dec 16, 2024 at 11:00 am IST

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